Overview:
- Brown & Joseph is a leading provider of commercial accounts receivable management solutions focused on the insurance industry
- The Company principally specializes in B2B third-party collection services, but also provides first-party collection services, insurance premium audits, and data and analytics reports to its insurance carrier customers
- The deal was brought to us by an operating executive at a mezzanine firm that needed a partner familiar with the revenue cycle / collections space to lead the acquisition of the Company as the sellers were only interested in talking to sponsors that had a deep understanding of collections
- As a result of our experience in the space, we were able to quickly get up to speed on the opportunity and establish the rapport needed with the sellers to be accepted as the lead equity firm in the deal
Investment Thesis/RAMP Value Creation Plan:
- Insurance providers are increasingly outsourcing non-core parts of their business to focus on underwriting risk
- We set out to build a leading insurance-focused ARM platform that would be attractive to buyers focused on the ARM industry as well as the vertical focus
- We continued the rapid organic growth path of the Company during our hold period by focusing on certain markets and developing new service lines
- We recruited a CEO that we had successfully backed in the past at RMP, our previous revenue cycle investment, to execute an organic strategy supplemented by accretive tuck-in acquisitions
- We built out technology and reporting functions to provide data and analytics about accounts to customers (greatly increasing account stickiness and differentiation)
Exit:
- We successfully sold Brown & Joseph to a financial sponsor in Q2 2019
